Mergers and Acquisitions

Singapore’s Temasek Holdings bought 5% of Repsol for USD 1.35 billion. Repsol also agreed to sell most of its liquefied natural gas (LNG) assets to Royal Dutch Shell for USD 4.4 billion plus assumption of USD 2.3 billion in debt. The Spanish company is divesting assets after its credit rating was hurt by the nationalization of YPF’s Argentine assets last year.

ExxonMobil Canada bought Celtic Exploration for USD 3.1 billion. The transaction gives ExxonMobil control of about 221,000 hectares of natural gas liquids acreage in the Montney formation of British Columbia, and 42,000 hectares in the Duvernay shale of Alberta. Imperial Oil, of which ExxonMobil owns 70%, will exercise an option to invest USD 1.55 billion for a 50% stake in Celtic.

Chinese National Offshore Oil Company (CNOOC) bought Nexen for USD 15.1 billion. Nexen will operate as a wholly owned subsidiary of CNOOC. The deal required approval from the governments of Canada, the UK, the European Union, China, and the United States. CNOOC said it will keep Nexen’s UK assets and operations in the Gulf of Mexico and offshore Nigeria.

Sinopec is buying 50% (425,000 net acres) of Chesapeake Energy’s net oil and natural gas leasehold in the Mississippi Lime play of north Oklahoma for USD 1.02 billion. Prior to the transaction, these assets net to Chesapeake’s interest produced 34,000 BOED in the fourth quarter of 2012 from 140 million BOE of net proved reserves.

Linn Energy and LinnCo bought Berry Petroleum for USD 4.3 billion. The transaction adds assets in California, the US Permian Basin, east Texas, the US Rocky Mountain region, and the Uinta Basin to Linn’s portfolio. The assets involve production of about 240 MMcf/D and proved reserves of 1.65 Tcf.

Exco Resources sold stakes in its conventional oil and gas assets in west Texas, east Texas, and north Louisiana to Harbinger Group (HGI) for USD 725 million. The transactions remove these assets from the joint venture arrangement between Exco and BG Group. Ownership now comprises HGI (74.5%) and Exco (25.5%).

Hercules Offshore bought the Ben Avon offshore drilling rig from a KCA Deutag subsidiary for USD 55 million. The rig is a LeTourneau class 822 SD-C, self-elevating rig registered and flagged in Panama. The company also contracted with Cabinda Gulf Oil for the use of the rig, involving a forward-looking revenue value of USD 119 million.


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